Pepper Lunch Builds on a Banner 2024 with Continued Momentum

Brand's Average Unit Volume Increased 5.4% with 100% of Restaurants Seeing Same Store Sales Growth

LOS ANGELES, April 21, 2025 (GLOBE NEWSWIRE) -- Pepper Lunch, a one-of-a-kind Japanese fast-casual concept with more than 540 locations across 17 countries, is continuing momentum generated from a banner 2024 year, thanks to increases across all sales and guest satisfaction metrics.

In Q1 this year, the brand opened three new locations in Tampa Bay, Florida, Salt Lake City, and in Orange County, California, at the flagship Irvine Spectrum Center. These three restaurants represent just a few of the 15 locations Pepper Lunch plans to open in 2025.

2024 results include:

• Average Unit Volumes increased nearly $83,000 per restaurant, or 5.4% bringing the brand's AUV to $1.617M up from $1.3M in 2022.
• 100% of its North American restaurants saw same store sales growth up to 11.9%.
• The brand's "test store” where Pepper Lunch is implementing various guest-facing initiatives including an all-new tech stack to elevate the diner and team member experience, saw the largest percentage of growth.
• Five (5) more experienced franchisees committed to opening a combined 40 more restaurants throughout California, Nevada, and Oregon in the next three to five years. This brings the total units under active development to 75 stores across six (6) states (+Arizona, Hawaii, and Florida) and the territory of Guam in just 20 months of franchising in the U.S.
• New franchise partners which offer a mix of franchising and corporate executive experience with brands such as Popeyes, Subway, Carl's Jr, Dave's Hot Chicken, Jamba Juice, and Halal Guys joined Pepper Lunch in 2024.
• New franchise partners headlined by The Carl L. Karcher Group, led by the son of the founder of Carl's Jr., which has committed to 20 Pepper Lunch units across four territories. Current franchisees of Carl's Jr., Jamba Juice and Dave's Hot Chicken Restaurants, with 120 in all, the Group will bring Pepper Lunch to Southern California areas including San Diego County with five stores, Inland Empire with six stores, and the High and Low Desert areas with four stores. The Group will also open five Pepper Lunch locations in Las Vegas
• Paul Tran, Director of Franchise Development at Pepper Lunch, has bought in for six stores, the first of which will open in February, just five months from his initial agreement signing. The group's first location is in the illustrious Irvine Spectrum Center in Irvine, California, making the second Pepper Lunch restaurant in one of Orange County's largest and most populated cities. Previously, Tran led the restaurant group which owned and operated nine Halal Guys in Southern California, which was recently acquired by a hospitality company.

"The simplicity of the operation, the labor model, and the rise of Asian culture and food concepts in America are attractive and differentiated from other brands we could operate,” said Carl L Karcher regarding why his group selected Pepper Lunch to be the fourth brand within their restaurant portfolio.

"2024 was a transformative year for this brand,” said Troy Hooper, CEO of Pepper Lunch. "Not only did we begin to see the green shoots from the strategic pieces we put in place beginning in 2023, but now we're firing on all cylinders, and look forward to an even better year with continued sales growth.”

Established in 1994, Pepper Lunch is one of Japan's largest homegrown franchise restaurant brands with over 540 locations in 17 countries. Renowned for quality food served in a unique and innovative way for dining in or delivery, and with guests being able to get in, dine, and be on their way in 20 minutes for under $20, the beloved Japanese-based brand seeks experienced franchise partners to expand its proven business model and cutting-edge customer offerings across the United States.

About Pepper Lunch

The original fast casual Japanese D-I-Y teppan restaurant, Pepper Lunch was founded in 1994 by one of Japan's most famous chefs and entrepreneurs who wanted to introduce affordable premium steaks with quality ingredients served on a sizzling iron plate. Deliciously irresistible, Pepper Lunch proudly offers quality, tasty, and affordable meals sourced from the finest ingredients paired with an unforgettable experience.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/99f007b1-e767-40e6-a488-6c6484e9c214

CONTACT: Contact:

Joshua Levitt

Media for Pepper Lunch

949.981.0757

[email protected]